The FCA has published Consultation Paper 16/37: Implementing information prompts in the annuity market (CP16/37).

In CP16/37 the FCA sets out proposals to amend its rules in relation to the purchase of products that provide consumers with guaranteed income in retirement (pension annuities). The changes would require firms to inform consumers how much they could gain from shopping around and switching provider before a potential annuity purchase. Specifically the proposals set out an information prompt to help consumers understand the benefits of shopping around and, if appropriate, switching providers. The FCA is consulting on:

  • when the information prompt should be provided to consumers;
  • the scope of the information prompt; and
  • the content of the information prompt, and when firms should implement the changes.

The deadline for comments on CP16/37 is 24 February 2017.

View Implementing information prompts in the annuity market: CP16/37, 25 November 2016